Forex: AUD/USD stuck around 1.03 ahead of RBA minutes

AUD/USD is last at 1.0304, flat so far for the week, with US markets having been closed over Monday. The pair dipped yesterday to fresh 4-day lows at 1.0275, recovering from there till late London session highs at 1.0315. AUD/USD awaits now RBA monetary policy minutes at 00:30 GMT, looking for hints for next meeting. With cash rate futures implying less and less chances of a rate cut by next March meeting, lastly around the 30%, and most analysts consulted by Bloomberg calling for a halt, and probably cutting by next May meeting, all eyes will be on the RBA minutes in hour and a half.

As Valeria Bednarik notes, Chief Analyst at Fxstreet.com: “Technically bearish, the pair is finding some demand in the 1.0260/70 area immediate support. A break below will favor a retest of the 1.0220 area, and a dovish statement that points for further rate cuts may trigger the move,” Valeria suggests, adding: “On the other hand, a more hawkish tone may see the pair rising towards 1.0370 area, where the strength of latest bearish interest will be challenged, as break above such level, will deny the downside an favor more gains ahead with 1.0500 then at sight,” she concludes.

The analyst finds support levels at:  1.0300, 1.0260 and 1.0220, while resistance levels at: 1.0330, 1.0370 and 1.0410.